How Your Disgruntled Client Can Turn Into Your Very Own Car Crash! (and How to Avoid It) (Law Tips)
January 21, 2019 —
Melissa Dewey Brumback - Construction Law in North CarolinaOver the summer, I was involved in a car crash. It was *not* my fault– heck, I wasn’t even driving but riding shotgun. But it wasn’t my husband’s fault either. A guy pulling out of a parking lot was watching the traffic coming up the road, but failed to see our car sitting in the same intersection waiting to turn into the same parking lot. He ran right into us.
It may not look like much, but the panels were so damaged it cost almost $9k in damages, over a month of car rental fees, and a LOT of aggravation on our part. The guy who hit us was very nice, apologized, and was concerned if we were injured. His insurance company ultimately paid for all of the damage. However– it wasn’t he who suddenly got a new part time job– that was me. I had to spend lots of time with police, insurance representatives, auto body mechanics, rental car places, you name it. If you’ve ever been in an accident, you know the headache involved. In fact, I have had 2 other accidents over the years (again, neither of which were my fault– I think I’m just a beacon for bad drivers?). One of those accidents was a 4 car accident– a driver hit my car, pushing it into the car ahead, which went into the car ahead of that. In that accident, my car was actually totaled. Fun times!
How is this relevant to your life as an architect or engineer? If you stay in the game (that is, the design field) long enough, chances are, you will, at some point, end up dealing with disgruntled clients. One of those clients may even file a lawsuit against you. Or, for that matter, you may end up getting sued by another party involved in your construction projects– one that you don’t even have a contract with.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
Arbitration and Mediation: What’s the Difference? What to Expect.
September 09, 2019 —
Brittany Rupley Haefele - Porter Law GroupMediation
Mediation is a process in which a neutral person or persons facilitate communication between the disputants to assist them in reaching a mutually acceptable settlement agreement. During this process, a neutral third party, with no decision-making power, intervenes in the dispute to help the litigants voluntarily reach their own agreement. Through a series of discussions, statements and private caucuses between the parties and the mediator, the process lets both parties negotiate and agree to a resolution with which everyone can abide. It is an excellent method of bringing a dispute to a conclusion without the further uncertainty and expense of litigation.
Arbitration
Arbitration, in addition to mediation, is one of the most common methods of alternative dispute resolution (“ADR”), whereby the parties bring a dispute before a disinterested third party who is typically selected by both parties. An arbitrator hears evidence presented by the parties, makes legal rulings, determines facts and makes an arbitration award. Arbitration awards may be entered as judgments in accordance with the agreement of the parties or, where there is no agreement, in accordance with California statutes. Arbitrations can be binding or non-binding, as agreed by the parties in writing. In most cases, the arbitrator’s decision is binding and final.
When is it Appropriate to Engage in Mediation and/or Arbitration?
Mediation can be held at any time, before or during a lawsuit. It is a voluntary process, where both sides simply agree to go to mediation in an effort to get the case settled. Sometimes, it is a contractually required process for the parties to complete prior to going to litigation or arbitration. Typically, in this situation, if a party ignores this requirement and fails to participate in a contractually mandated mediation, they will lose their rights to recover attorneys’ fees and costs – even if they ultimately prevail. Other times, mediation is strongly encouraged by the judge if a lawsuit has already been filed, and some would even say, ordered by the court (though it is typically not called “mediation” but something very similar like a “Dispute Resolution Conference” or “Mandatory Settlement Conference”).
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Brittany Rupley Haefele, Porter Law GroupMs. Haefele may be contacted at
bhaefele@porterlaw.com
First Quarter Gains in Housing Affordability
May 20, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to the National Association of Home Builders’ (NAHB) Eye on Housing, the combination of low interest rates and home prices has provided a “solid boost in nationwide affordability in the first quarter of 2015.” Furthermore, “66.5 percent of new and existing homes sold between the beginning of January and end of March were affordable to families earning the U.S. median income of $65,800.” Syracuse, New York remained the U.S.’s most affordable major housing market, while the San Francisco-San Mateo-Redwood City, California region was the nation’s least affordable major housing market. All five of the least affordable small housing markets were in California.
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New Hampshire Asbestos Abatement Firm Pleads Guilty in Federal Fraud Case
February 02, 2017 —
Justin Rice - Engineering News-RecordFor the second time in three months, a New England-based asbestos removal company pleaded guilty in federal court to wage and benefit violations.
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Justin Rice, ENRMr. Rice may be contacted at
ricej@enr.com
No Indemnity Coverage Where Insured Suffers No Loss
November 05, 2014 —
Tred R. Eyerly - Insurance Law HawaiiThe insured subcontractor sought coverage under its Builder's Risk policy for loss despite already being paid under contract the amount sought under the policy. MKB Constr. v. Am Zurich Ins. Co., 2014 U.S. Dist. LEXIS 136096 (W.D. Wash. Sept. 24, 2014).
MKB contracted with the Lower Yukon School District (LYSD) to place gravel fill for a new building pad upon which a school building would be placed in Emmonak, Alaska. The project site was built on tundra that melted in the summer, becoming marshy and pocketed by pools of standing water. LYSD provided the bidding contractors with information stating that settlements of 3 to 9 inches could be expected in areas with 30 inches of fill.
The contract was awarded to MKB, who subsequently realized it had under bid the amount of gravel fill that would be required. The estimated difference in the amount bid and the amount that would be needed was 6,583 cubic yards. LYSD refused to increase the contract price.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Understanding Indiana’s New Home Construction Warranty Act
April 30, 2014 —
Beverley BevenFlorez-CDJ STAFFMarisa L. Saber on the Subrogation & Recovery Law Blog, discussed Indiana’s New Home Construction Warranty Act, and how it can benefit both builders and plaintiffs in construction defect cases. Saber stated that the “Indiana New Home Construction Warranty Act (the “Act”) (see Indiana Code §32-27-2-1 et. seq.) allows a builder to provide specific warranties and disclaim all implied warranties if the text of the statute is followed.” Furthermore, the warranties must be backed by an insurance policy.
Saber answers the question as to why a builder would choose to provide express warranties: “The likely answer is that it allows the builder to have control over its liability if a construction defect occurs.” For instance, “[i]f a builder provides express warranties via the Act, it is assured that any warranty liability will be covered by insurance.” This benefits a plaintiff working in a subrogation case, “as there will be guaranteed insurance for the construction defect if the builder complies with the Act.”
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2022 Construction Outlook: Continuing Growth But at Slower Pace
January 24, 2022 —
Garret Murai - California Construction Law BlogIn the midst of a pandemic that has lasted far longer than I think many of us thought it would, it’s been a study in contrasts:
- There has been over 305 million COVID-19 cases and 5.5 million deaths worldwide since the start of the pandemic.
- The U.S. stock market gained a whopping 26.9% in 2021.
- The annual rate of inflation in the U.S. hit 6.8% in November 2021 the highest it has been in nearly 40 years.
- The U.S. unemployment rate stood at 4.2% at the end of 2021, down from 14.7% in April 2020, the second highest unemployment rate since the Great Depression.
- The Doomsday Clock struck 100 seconds before midnight in 2021 as scientists warn that global leaders are doing too little too late to combat climate change that has seen global temperatures rise roughly 2 degrees Fahrenheit since the pre-industrial era.
- 2021 saw the launch of the first all-civilian spaceflight by Elon Musk’s Space X which was just one of 16 private spaceflights by tech billionaires Richard Branson’s Virgin Galactic and Jeff Bezos’ Blue Origin.
For the construction industry, when we started out in 2021, economists were estimating that construction starts would be up just 4% in 2021 after taking a 14% free-fall in 2020. As it turned out, construction starts increased 12% in 2021. That’s why economic forecasts should be viewed less like a marksmanship competition and more like horseshoes and hand grenades. Close is about the best you can realistically hope for.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Missouri Construction Company Sues Carpenter Union for Threatening Behavior
February 10, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to KMOV News, Raineri Construction Company in Missouri filed suit against the Local Carpenters’ District Council claiming employees had been “stalked and threatened” by the union. However, the Carpenters Union “denies the allegations” and said “it has the right to protest against a company that doesn’t always meet the union standards for pay and benefits.”
Tony Raineri, one of the construction company’s executives, said to KMOV News: “For me it wasn’t such a big deal until they started making threats of bodily harm, started following me and my wife to our home, started following my employees to their homes.”
KMOV News reported that a “union representative told News 4’s Craig Cheatham that no one acting on behalf of the Carpenters Union ever threatened, harassed or stalked Raineri, his employees or their clients.”
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